NAC net income dives amid geothermal write-off, ore price slump - Manila Bulletin
Published December 14, 2025
NAC Reports Significant Decline in Net Income Due to Geothermal Write-Off and Ore Price Decline
Nickel Asia Corporation (NAC) has reported a substantial decrease in its net income for the first half of 2023, which has been attributed primarily to a write-off related to its geothermal operations and a notable slump in ore prices. The company disclosed that its net income fell to ₱1.84 billion, a stark decline from the ₱3.76 billion recorded during the same period in 2022.
The decrease in net income reflects a 51% drop year-on-year, and the company has indicated that this downturn is largely due to the write-off of ₱1.2 billion associated with its geothermal segment. This write-off stems from the company's decision to impair its investment in the geothermal project, which has faced various challenges over the past year.
In addition to the geothermal write-off, NAC has also encountered difficulties due to the decline in nickel ore prices. The average price of nickel ore has dropped significantly, leading to reduced revenues from its mining operations. NAC reported that the average selling price of its nickel ore during the first half of 2023 was approximately $12.68 per wet metric ton (WMT), down from $15.36 per WMT in the same period last year.
Despite these challenges, NAC remains optimistic about its future prospects. The company has emphasized its commitment to sustainable practices and its ongoing efforts to enhance its geothermal energy initiatives. NAC’s geothermal projects are seen as a vital part of its strategy to diversify its energy portfolio and reduce reliance on fossil fuels.
Financial Overview
For the first six months of 2023, NAC reported total revenues of ₱6.32 billion, which is a decrease from the ₱9.34 billion reported in the first half of 2022. This decline was primarily driven by the reduced sales volume and lower average prices of nickel ore. NAC sold a total of 1.18 million WMT of nickel ore during the first half of the year, a slight decrease from 1.21 million WMT sold in the same period last year.
The company’s cost of sales also increased, reaching ₱4.52 billion, compared to ₱6.29 billion in the first half of 2022. This increase in costs can be attributed to higher operational expenses and the need for continued investment in its mining and geothermal projects.
Operating income for NAC during the first half of 2023 was reported at ₱1.8 billion, a decrease from ₱3.1 billion in the previous year. The decline in operating income is reflective of the reduced revenue and increased costs, which have impacted the company’s overall profitability.
Geothermal Operations and Write-Offs
NAC's geothermal operations have been a focus for the company, particularly as it seeks to expand its renewable energy portfolio. However, the decision to write off ₱1.2 billion related to its geothermal investments highlights the challenges faced in this sector. The company has indicated that it is actively reviewing its geothermal projects to identify potential improvements and opportunities for future growth.
The write-off is a significant financial event for NAC, as it not only impacts the company’s immediate financial results but also its long-term strategy in the renewable energy sector. NAC has previously expressed its commitment to developing sustainable energy solutions, and the geothermal sector is seen as a key component of this strategy.
Market Conditions and Future Outlook
The decline in nickel ore prices has been a significant factor in NAC's financial performance. The global market for nickel has experienced volatility, with prices affected by various factors, including changes in demand from the electric vehicle industry and fluctuations in supply. As a result, NAC has had to navigate a challenging market environment, which has impacted its revenue generation capabilities.
Looking ahead, NAC is focused on adapting to these market conditions while continuing to pursue opportunities for growth. The company is exploring ways to enhance its operational efficiency and reduce costs, which may help mitigate the impact of fluctuating ore prices. Additionally, NAC is committed to advancing its geothermal projects, which are expected to play a crucial role in its future growth and sustainability efforts.
Conclusion
In summary, Nickel Asia Corporation has reported a significant decline in net income for the first half of 2023, primarily due to a write-off related to its geothermal operations and a decrease in nickel ore prices. The company's revenues and operating income have also declined, reflecting the challenging market conditions and increased costs associated with its mining and geothermal activities. Despite these challenges, NAC remains committed to its renewable energy initiatives and is focused on navigating the evolving market landscape to ensure future growth and sustainability.
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